To analyze the situation of simultaneous causality bias,consider the following system of equations:
Yi = β0 + β1Xi + ui
Xi = + Yi + vi
Demonstrate the negative correlation between Xi and for

Question

To analyze the situation of simultaneous causality bias,consider the following system of equations:
Yi = β0 + β1Xi + ui
Xi =  +  Yi + vi
Demonstrate the negative correlation between Xi and  for  < 0 ,either through mathematics or by presenting an argument which starts as follows: "Imagine that ui is negative."

Quizplus · Accepted Answer

The Answer of To analyze the situation of simultaneous causality bias,consider the following system of equations:
Yi = β0 + β1Xi + ui
Xi =  +  Yi + vi
Demonstrate the negative correlation between Xi and  for  < 0 ,either through mathematics or by presenting an argument which starts as follows: "Imagine that ui is negative."

To Analyze the Situation of Simultaneous Causality Bias,consider the Following